"Help Farmers and SMEs" Food Industry Continues Producing 'Good Food'

Value Consumption Trend Spreads to Food Industry
Establishing a Virtuous Cycle Supporting Small-Scale Raw Material Farmers and Partners

[Asia Economy Reporter Choi Sunghye] As the trend of value consumption spreads across the industrial sector, a wave of ‘good food’ is also blowing through the food industry. In particular, the food industry is accelerating the production of good food by supporting relatively small-scale raw material farms and partner companies. Supporting farms and partners not only helps them generate income but also ensures a long-term supply of high-quality raw materials or products.

◇Win-win strategies to help farmers in difficulty attract attention

According to the related industry on the 18th, Nestl?’s coffee brand Nescaf? has been implementing the ‘Nescaf? Plan,’ based on win-win cooperation with coffee farmers, to realize sustainable coffee production. In 2010, despite the coffee price crash, the profits taken by middlemen increased, causing a decline in farmers’ profitability. Recognizing this situation, Nescaf? started the Nescaf? Plan, actively engaging in coffee cultivation, production, and distribution in cooperation with coffee farmers. Through this, coffee farmers receive high-quality coffee seedlings and agricultural technology and sell harvested beans directly without middlemen, enabling them to improve crop quality and increase income. At the same time, Nescaf? secures a stable supply of high-quality coffee beans, creating a virtuous cycle.

In Korea, Lotte Nestl? Korea, responsible for the production and sales of Nescaf? products, introduced ‘Nescaf? Origins’ at the end of last year, produced through the Nescaf? Plan in the best coffee origins. Nescaf? Origins includes four types: ▲Colombia ▲Indonesia Sumatra ▲Uganda-Kenya ▲Alta Rica, offering single-origin and blended stick coffee that captures the unique taste and aroma of each origin. Farmers handpick coffee cherries in selected tropical highland origins and sun-dry the beans, allowing consumers to experience the delicate taste and aroma of the coffee.

Ottogi is one of the food companies faithfully practicing corporate social responsibility through various means such as sponsorship, volunteering, and donations. Especially last month, to help kelp farmers in Wando, Jeonnam, who are struggling due to COVID-19, Ottogi released ‘Odongtongmyeon,’ containing two pieces of clean Wando kelp, which attracted attention. After a limited edition product was sold out through a variety show and gained sensational popularity, the company decided to continue selling Odongtongmyeon with two pieces of kelp included.

The company stated that the number of Odongtongmyeon sold in one month reached a whopping 10 million units, a more than 300% increase compared to the same period last year. The Odongtongmyeon case is cited as a positive example of a virtuous cycle where companies step up to help kelp farmers in difficulty, consumers encourage the company’s good actions through purchases, and consumers’ purchases lead back to supporting the farmers.

◇Support for product development and overseas market expansion of SMEs

CJ CheilJedang launched ‘Mijeongdang’ in 2018 together with its partner company Mijeong. Founded in 1963 in Gyeongju, Gyeongsangbuk-do, Mijeong started as a noodle shop and rice cake mill and boasts over 50 years of tradition as a specialist in noodles and rice cakes. It has maintained a partnership with CJ CheilJedang for over 10 years, meeting CJ’s stringent standards with excellent quality.

CJ CheilJedang judged that Mijeong is not just a partner company but has enough competitiveness to launch products for general consumers independently. Therefore, CJ provided comprehensive support, including transferring product quality management know-how and product design, to help launch the brand. CJ CheilJedang handles distribution and applied its win-win brand ‘Joyful Companion’ to promote Mijeong as a promising food SME.

Mijeongdang, born through this process, received great consumer interest and successfully settled in the market. In May, it continued to expand its product lineup by launching ‘Mijeongdang Spicy Carbonara Noodle Tteokbokki,’ ‘Mijeongdang Spam Noodle Tteokbokki,’ and ‘Mijeongdang Kimchi Mushroom Kalguksu.’

SPC Samlip’s food distribution subsidiary SPC GFS is engaging in win-win cooperation by collaborating with domestic SMEs to develop export products and support overseas market expansion. In June, SPC GFS announced that it would export export-only ‘canned kimchi’ and ‘seaweed’ to Poland, developed in collaboration with small food manufacturers Boseong Ireokjo Korea and Jin Hyun Food. SPC GFS supported all stages from market research, product concept, and planning to overseas market development, leading SMEs’ entry into overseas markets. The exported ‘canned kimchi’ and ‘seaweed’ will be stocked in July at ‘Biedronka,’ Poland’s largest discount chain, and sold in about 2,800 stores. SPC GFS, which exports food ingredients to 54 countries including the U.S., China, and Canada, plans to continuously support the overseas expansion of domestic SMEs in the future.

This content was produced with the assistance of AI translation services.